1. Examine the table below showing the price elasticities of demand for tobacco products.

Source: Onder and Yureki, 2006

Let’s first understand how to use the table by looking at the price elasticity of demand overall for tobacco users, the last row of the table entitled “Total.” The total price elasticity coefficient is -0.87. The coefficient is negative since higher tobacco prices result in less quantity demanded, ceteris paribus. So for example, a 10 % increase in tobacco taxes would reduce the quantity demanded by 8.7% overall. Within this 8.7% reduction in quantity demanded, 4% would quit altogether (Elasticity of Smoking Participation coefficient) while the quantity demanded would fall by 4.7% among those who keep smoking (Conditional Demand Elasticity).

Health advocacy groups during the last session of the Montana Legislature proposed raising the state’s tax on cigarettes by $1.50 per pack to boost it to $3.20 a pack. The purpose of the tax was two-fold; to reduce tobacco use and to raise badly needed tax revenue for programs suffering budget cuts and administered by the Montana Department of Health and Human Services. Also, the price elasticity of demand for tobacco products by youth is -1.2 (not shown).

1. Identify the demographic groups who will most respond to higher tobacco prices and offer an explanation why they respond the way they do.
2. If the primary purpose is to raise badly needed revenue for other programs cut by the Montana Legislature, what demographic will raise the most revenue for the government?
3. If you want to encourage smokers to drop the habit altogether, which demographic group would likely respond the most to the higher price of tobacco products by quitting the habit entirely?
4. How would all elasticities likely change in the long-run? Why?

1) The account title used for recording the payment of rent in advance for an office building is ________.

A) Prepaid Rent

B) Rent Payable

C) Rent Revenue

D) Rent Expense

2) Which of the following is an asset account?

A) Wages Payable

B) Notes Payable

C) Unearned Revenue

D) Accounts Receivable

3) A customer's promise to pay in the future for services or goods sold is called a(n) ________.

A) Accounts Receivable

B) Accounts Payable

C) Unearned Revenue

D) Notes Payable

4) Which of the following is classified as an asset account?

A) Prepaid Insurance

B) Notes Payable

C) Dividends

D) Unearned Revenue

5) ________ represents a debt owed for renting a building.

A) Prepaid Rent

B) Rent Payable

C) Rent Revenue

D) Rent Expense

6) Which of the following is a liability account?

A) Prepaid Advertising

B) Cash

C) Building

D) Unearned Rent

7) Which of the following is a liability account?

A) Accounts Payable

B) Prepaid Expense

C) Salaries Expense

D) Service Revenue

8) A liability created when a business receives cash from customers in advance of providing services or delivering goods is called a(n) ________.

A) notes receivable

B) unearned revenue

C) accrued liability

D) service revenue

9) Which of the following is a liability account?

A) Service Revenue

B) Building

C) Prepaid Rent

D) Unearned Revenue

10) Explain the difference between Accounts Receivable and Accounts Payable.

Answer:   

11) Saturn, Inc. paid the rent for the current month in cash. Which of the following accounts will be used to record the transaction?

A) Prepaid Rent

B) Rent Payable

C) Rent Revenue

D) Rent Expense

12) Amounts earned from delivering goods or services to customers are called ________.

A) notes receivable

B) unearned revenues

C) equity

D) revenues

13) Which of the following is provided in a typical chart of accounts?

A) Account balance

B) Account number

C) Dates of transactions

D) Transaction amounts

14) A listing of all accounts in numerical order is called a(n) ________.

A) Ledger

B) Journal

C) Income statement

D) Chart of accounts

15) Both the chart of accounts and the ledger ________.

A) provide the balance of each account at a specific point in time

B) list the account names and numbers of the business

C) fulfill the task of showing all of the increases and decreases in each account

D) All of the statements are correct.

16) Regarding T-accounts, which of the following statements is correct?

A) A T-account is a more detailed form of an account in the journal.

B) The right side of a T-account is a debit for asset accounts and a credit for equity accounts.

C) Debits are posted on the right side of the vertical line.

D) A T-account is a summary device with credits posted on the right side of the vertical line.

17) Which of the following accounts decreases with a debit?

A) Accounts Receivable

B) Notes Payable

C) Cash

D) Rent Expense

18) "All debits are increases and all credits are decreases." Is this a correct statement? Explain your answer.

Answer:   

19) Which of the following accounts decreases with a credit?

A) Cash

B) Common Stock

C) Accounts Payable

D) Unearned Revenue

20) Which of the following accounts increases with a debit?

A) Prepaid Rent

B) Interest Payable

C) Accounts Payable

D) Common Stock

21) Which one of the following account groups will decrease with a debit?

A) assets and expenses

B) revenues and expenses

C) liabilities and revenues

D) assets and liabilities

22) Which of the following statements is true of expenses?

A) Expenses increase equity, so an expense account's normal balance is a credit balance.

B) Expenses decrease equity, so an expense account's normal balance is a credit balance.

C) Expenses increase equity, so an expense account's normal balance is a debit balance.

D) Expenses decrease equity, so an expense account's normal balance is a debit balance.

23) Which one of the following account groups normally has a credit balance?

A) assets and liabilities

B) equity and assets

C) liabilities and revenues

D) assets and expenses

24) Which one of the following account groups normally has a debit balance?

A) assets and expenses

B) revenues and expenses

C) liabilities and revenues

D) assets and liabilities

25) Accounts Receivable is a(n) ________ account and has a normal ________ balance.

A) liability; debit

B) asset; debit

C) liability; credit

D) asset; credit

26) Accounts Payable is a(n) ________ account and has a normal ________ balance.

A) liability; debit

B) asset; debit

C) liability; credit

D) asset; credit

27) Prepaid Rent is a(n) ________ account and has a normal ________ balance.

A) asset; debit

B) liability; credit  

C) liability; debit

D) asset; credit

28) For Office Supplies, the category of account and its normal balance is ________.

A) liabilities and a debit balance

B) assets and a debit balance

C) liabilities and a credit balance

D) assets and a credit balance

29) The Salaries Payable account is a(n) ________.

A) liability account with a normal debit balance

B) asset account with a normal debit balance

C) liability account with a normal credit balance

D) asset account with a normal credit balance

30) For expenses, the category of account and its normal balance is ________.

A) equity and a credit balance

B) assets and a debit balance

C) assets and a credit balance

D) equity and a debit balance

31) The Accounts Receivable account of Brownstone, Inc. has the following postings:

Accounts Receivable

Calculate the ending balance of the account.

A) $28,000 debit

B) $25,000 debit

C) $3,000 credit

D) $22,000 debit

32) The Accounts Payable account of Waterford, Inc. has the following postings:

Accounts Receivable

Calculate the ending balance of the account.

A) $12,000 credit

B) $14,000 debit

C) $14,000 credit

D) $8,000 debit

33) A business purchases $3,500 of office supplies for cash. Which of the following sets of ledger accounts reflects the posting of this transaction?

A)  

Office Supplies

Accounts Payable

B)  

Office Supplies

Cash

C)  

Office Supplies

Accounts Payable

D)  

Office Supplies

Cash

34) When is a trial balance usually prepared?

A) after each entry is journalized

B) before the financial statements are prepared

C) after the financial statements are prepared

D) at the beginning of an accounting period

3.50

Passedix is a game of chance played with three fair dice. Players bet whether the sum of the faces shown on the dice will be above or below ten. During the late sixteenth century, the astronomer and mathematician Galileo Galilei was asked by the Grand Duke of Tuscany to explain why “the chance of throwing a 9 with three fair dice was less than that of throwing a 10.” (Interstat, Jan. 2004) The grand duke believed that the chance should be the same because “there are an equal number of partitions of the numbers 9 and 10.” Find the flaw in the Grand Duke’s reasoning and answer the question posed to Galileo. Hint: What the Grand Duke was saying is: There are six ways to get a 9: 1+2+6; 1+3+5; 1+4+4; 2+2+5; 2+3+4; 3+3+3. There are also six ways to get a 10: 1+3+6; 1+4+5; 2+2+6; 2+3+5; 2+4+4; 3+3+4. [10 pts] 3.56 Two fair dice are tossed, and the following events are defined: A: {Sum of the numbers showing is odd} B: {Sum of the numbers showing is 9, 11, or 12} Are events A and B independent? Why? [10 pts]

Write the journal entries in the given table for below transactions of Brave Corporation during June 2020.

Payroll Accounts and Year-End Entries

The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:

please show all working out and without using ecxel

Quasar Tech Ltd. is investing $6 million in new machinery that will produce the next-generation routers. Sales to its customers will amount to $1 750 000 for the next 3 years and then increase to $2.4 million for 3 more years. The project is expected to last 6 years and cost the company annually $898 620 (excluding depreciation). The machinery will be depreciated to zero by year 6 using the straight-line method. The company’s tax rate is 30 per cent, and its cost of capital is 16 per cent.

a. What is the payback period?

b. What is the average accounting return (ARR)?

c. Calculate the project NPV.

d. What is the IRR for the project?

The company's total shareholders' equity as of 12/31/2020 is $1,777,000 Common stock; par value of $2; Auth 500,000 and issued/outstanding 100,000 @ an average issue price of $4.75. Accumulted other comprehensive income is $180,000. The balance in shareholders' equity is retained earnings.

During 2021: Sales revenue $880,000, interest revenue $30,000 ; rent revenue $160,000; Dividend Revenue $80,000; sales Returns & Allowances $25,000; Sales discounts $70,000; COGS $350,000; Selling exp $100,000; General Administrative expenses $80,000; Interest expense $70,000; Loss on sale of Investments $60,000; Restructuring Costs $75,000; Gain on sale of compenant that qualifies as a discontinued ops $150,000; Write down of inventory $50,000; foreign currency translation gain $20,000; unrealized gain in value of land $50,000; .Unrealized gain in the value of patents $50,000; unrealized loss in value of available for sale securities $60,000 ;

Additional information: Tax rate is 20% The company issues 50,000 shares on 10/1/21 for $250,000. The company issues 20,000 shares on 7/1/21 for equipment that has a fair value of $100,000 The company declared dividends of $100,000 of which $25,000 will be paid on 1/31/22.

2.) Prepare a statement of shareholders' equity.